Gujarat strife led to re-think by foreign investors
Thursday, 14 November 2002, 20:30 IST
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NEW DELHI: The sectarian strife in Gujarat has made foreign investors think twice about coming to India, Canada's Natural Resources Minister Herb Dhaliwal has said. India could attract more foreign investment if it reduced bureaucratic red tape and took steps to improve relations between different communities, Dhaliwal told IANS in an interview here. Dhaliwal, a Canadian of Indian origin born in Punjab, is in India on a weeklong visit at the head of a business development mission comprising representatives of 45 companies. "India has to do better to attract foreign investment. Events like the riots in Gujarat do have a negative impact," he said. "It makes people think twice about making investments in India." "There is a need for a level playing field, an open and transparent system, political stability and racial harmony," he said. Foreign investment in India for the fiscal year that ended in March increased by 65 percent to $4.06 billion. The Indian government has an annual target of $10 billion for foreign direct investment, but has received only about $3 billion for the past few years. Dhaliwal, who noted that China had done more than India to attract foreign investments, said he had received complaints from Canadian investors that New Delhi often took too long to give approvals for projects. "There is a need for a single window system and I have raised this matter with the (Indian) government," he said. The leaders of India and Pakistan too would have to do more to settle their differences and work on creating an effective trade bloc, he said. "The political leaders of India and Pakistan have let their people down. Both countries have been doing tremendous disservice to their citizens at huge economic costs," Dhaliwal said. On the other hand, Canada and India could gain by increasing cooperation in sectors hydroelectric power generation, infrastructure, mining, geographic information systems, renewable energy and alternative fuels. "Canada is the biggest producer of hydroelectric power and India is about 1,000 MW short of power. And everyone knows power is what is needed for a successful economy," he said. The seven trillion cubic feet gas reserves discovered by Reliance Industries in offshore Andhra Pradesh has renewed the interest of Canadian companies in India's gas and oil sector. "India has not had a reputation for foreign investment in this area but finds like this naturally renew interest in the sector," Dhaliwal said. "A Canadian company called Niko Resources is already active in India." Niko has been operating in India since 1994 when it signed production-sharing contracts for five oilfields in Gujarat state. It also has a 10 percent share in 12 offshore exploration blocks. India and Canada also signed a memorandum of understanding on scientific cooperation Monday. The agreement will focus on building ties in 'geomatics', a combination of geography and information technology. Canada is seeking to provide expertise in high-end geographic information systems for vehicle location and tracking, geo-demographics, municipal administration, watershed management, land use, environment and advanced expertise in image processing and mapping from satellite imagery.
Source: IANS
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